Under the cosh German lender Deutsche Bank (ETR: DBK) has taken an axe to executive pay in a bid to shore up its problematic balance sheet, it emerged on Monday.
The bank, Germany’s biggest, revealed it paid out around €500mln bonuses last year. That was down a hefty 77% from the €2.4bn bonus pot in 2015.
It comes as the chief executive and Briton John Cryan attempts to reduce costs as part of a massive overhaul after legal investigations and fines for misconduct have blighted the supertanker bank.
Deutsche reported a net loss of €1.4 billion for 2016 ($1.5 billion), following a €6.8 billion ($7.2 billion) journey into the red in 2015.
In its results for the full year published today, Deutsche said it expects revenue to be “broadly flat”.
The lender has also announced plans to raise fresh capital via a €8bn rights issue – its fourth cashcall since the financial crisis, selling new shares at €11.65 each, a discount of 35% to the stock’s closing price on March 17.
Cryan has also scrapped plans to sell-off German retail banking division Postbank.
The firm has endured a $7.2 billion (£5.8 billion) settlement with American authorities following a probe into its sale of mortgage-backed securities during the financial crisis of 2008.
It was also fined more than £500 million in January after British and US regulators found that failings at the German lender led to 10 billion US dollars (£7.9 billion) being laundered out of Russia in a manner “highly suggestive of financial crime”.
Shares in Frankfurt shed 3.72% to €17.20.
Story by ProactiveInvestors